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City Water Tanzania

30 June 2007 | Cases | Resources

Case Abstract

The first part of the case examines how the Tanzanian government intends to address a pressing deterioration in the infrastructure and services of Dar es Salaam’s Water and Sewerage Authority (DAWASA). The decision process unfolds in the spring of 2002, on the heels of the Cochabamba uprising and increasing dispute over the involvement of the World Bank and the International Finance Corporation (IFC) in other water development projects in Ghana, Mauritania and South Africa.

Part B describes Tanzanian government’s privatization of DAWASA. It details the terms of the lease contract with an international operator, City Water, discussing the alternatives that were considered and discarded, the bidding process, and the roles and motivations of the parties.

Part C provides a dual role play, casting students in the position of Edward Lowassa, Tanzania’s Minister of Water, and Cliff Stone, a former director of sales for Africa for Biwater and now part of City Water’s management. The two role plays ask each party to review the progress by May 1st, 2005. Each party reviews their accomplishments and shortcomings, two years after the signing of the lease in February 2003. Part C triggers a negotiation between representatives of the two sides (Lowassa and Stone) and an analysis of their competing expectations and only partial fulfilment of their assumed roles.

Part D summarises the decision of the negotiation: the break-up of City Water Tanzania, and its aftermath, including litigation and forgone opportunities to meet the needs of the local residents.

Authors: Kevin McKague
Institution: York University, Canada
Competition Year 2007
Place 2nd place
Track Corporate Sustainability
Key Words Sustainable development, Strategic alliances, Management in a global environment, Partnership
Courses Strategy, Sustainability
Target Audience MBA Students, Business Executives, BBA
Permission Rights This case is available for purchase from the Case Centre: Part A (9B07M025), Part B (9B07M026), Part C (9B07M027B) and Supplement (9B07M027A), Part D (9B07M028). It is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.